Kim Dotcom can have seized assets returned – New Zealand High Court

The New Zealand High Court has ruled that Megaupload founder Kim Dotcom can be reunited with millions of dollars, property, cars, and artwork. It comes after the court denied an application by the Crown to extend the freezing of Dotcom's fortune.

The application was made by the Crown in the High Court at
Auckland on Tuesday. It requested the extension of restraining
orders on Dotcom's fortune, which are due to lapse on Friday,
according to New Zealand media reports.

Dotcom's lawyer, Robert Gates, said Tuesday night that Justice
Susan Thomas had turned down the Crown's application. However,
the freezing orders will remain in place for the next 14 days to
give the Crown an opportunity to appeal the decision.

The Megaupload founder was ecstatic about the decision, despite
the possibility of an appeal, and tweeted: “Breaking News:
High Court ruling just now. Mona and I are getting our New
Zealand assets back, unless the Crown appeals.”

He also tweeted that if and when he gets his assets back, he will
invite members of his political party – the Internet Party – to
the Taupo race track for a track day.

The application to continue the freeze on his assets was made on
behalf of the United States, which wants to extradite and
prosecute Dotcom for money laundering, online piracy, and
conspiracy to commit piracy.

Gapes managed to successfully oppose the application by arguing
that the original order was made on the back of a criminal
jurisdiction prosecution, whereas the extension application was
based on a “future action for civil forfeiture.” The
Criminal Proceeds Act allows extensions only on duration – not on
new grounds, said Gapes.

Recording studios and movie labels have recently filed several
civil law suits against the internet tycoon in the US.

Earlier this month, six major Hollywood studios opened a huge
lawsuit against Kim Dotcom and his colleagues. Among them are
film giants 20th Century Fox, Disney, and Paramount. He was also
sued earlier this month by the Recording Industry Association of
America (RIAA), which alleged that he profited massively from the
copyright infringement of music.

In February, the New Zealand Appeals Court ruled that the 2012
raid on Dotcom's mansion was legal. The ruling was a significant
setback for the internet tycoon and dealt a further blow to his
aim of avoiding extradition to the US.

US authorities maintain that Megaupload, which is now defunct,
cost copyright holders $500 million through lost revenues. Dotcom
says he is innocent and that Megaupload was protected by the
Digital Millennium Copyright Act.

Dotcom's extradition hearing is set for July. If convicted, he
could face up to 20 years behind bars.